Working for integration Mogalakwen

Lephalale

Botswana Limpopo

Waterberg Mookgopon District Modimolle Municipality Thabazimbi

R510

R511 R516 Bela-Bela Ngaka Modiri Molema District Bojanala Municipality Moses District Kotane Municipality Dr J Ramotshere Local Moretele Moro Moiloa Municipality of Madibeng City of Kgetlengrivier Rustenburg Sources:Tshwane Esri, USGS, N

Thabazimbi – Limpopo

Housing Market Overview Human Settlements Mining Town Intervention 2008 – 2013 The Housing Development Agency (HDA) Block A, Riviera Office Park, 6 – 10 Riviera Road, Killarney, Johannesburg PO Box 3209, Houghton, South Africa 2041 Tel: +27 11 544 1000 Fax: +27 11 544 1006/7

Acknowledgements The Centre for Affordable Housing Finance (CAHF) in Africa, www.housingfinanceafrica.org Coordinated by Karishma Busgeeth & Johan Minnie for the HDA

Disclaimer Reasonable care has been taken in the preparation of this report. The information contained herein has been derived from sources believed to be accurate and reliable. The Housing Development Agency does not assume responsibility for any error, omission or opinion contained herein, including but not limited to any decisions made based on the content of this report.

© The Housing Development Agency 2015 Contents

1. Frequently Used Acronyms 1

2. Introduction 2

3. Context 5

4. Context: Mining Sector Overview 6

5. Context: Housing 7

6. Context: Market Reports 8

7. Key Findings: Housing Market Overview 9

8. Housing Performance Profile 10

9. Market Size 15

10. Market Activity 20

11. Lending Activity 28

12. Leverage 32

13. Affordability Profile 35

14. Rental Index 39

15. Key Concepts 41

16. Source List 44

1. Frequently Used Acronyms CAHF – Centre for Affordable Housing Finance in Africa GDP – Gross Domestic Product GVA – Gross Value Added HDA – Housing Development Agency HPI – Housing Performance Index IDP – Integrated Development Plan NU – Non Urban, a Stats SA subplace designation RDP – Reconstruction and Development Programme SDF – Spatial Development Framework SP – Subplace StatsSA – Statistics South Africa

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 2. Introduction

The Housing Development Agency (HDA) is a national public development agency that promotes sustainable communities by making well-located land and buildings available for the development of human settlements. As its primary activity, the HDA assembles and releases state, private and communal land and buildings for development. In addition, the HDA provides project delivery support services to organs of state at local, provincial and national levels.

In setting the agenda and asserting its role in the housing continuum, the HDA realised that there is a gap in the provision of accurate and easy-to-understand information regarding the property market, particularly in previously overlooked areas, including the mining towns.

The development of this report is a result of this gap. It aims to explore and present an overview of the formal housing markets in Matjhabeng, Moqhaka, Merafong, Randfontein, Westonaria, Thabazimbi, Greater Tubatse, Elias Motsoaledi, Lephalale, Fetakgomo, eMalahleni, City of Matlosana, Mogale City, Ephraim Mogale, Steve Tshwete, Thaba Chweu, Tsantsabane, Ga-Sekgonyana, Gamagara, Kgetlengrivier, Madibeng, Moses Kotane and Rustenburg so as to change perceptions of affordable markets, and as such, expand and deliver affordable housing options within South Africa’s municipalities.

The study was undertaken over a three-month period, relying mainly on the high level indicators developed by the Centre for Affordable Housing Finance in Africa. These indicators consider the market conditions, existing market size and activity, average prices and values, market growth and lending activity in the area to support a better understanding of the opportunity and the impact of various housing policy interventions. The indicators also highlight the range of opportunities across areas to stimulate the affordable housing market in South African municipalities.

The methodology also included site visits to eMalahleni, Randfontein, Westonaria, and Rustenburg so as to confirm findings and to gain more insights about the current housing circumstances.

The report is intended for use by all stakeholders involved in planning, including professionals in municipalities, Government officials, private sector, investors, developers and urban planners, for the mission of enticing a range of development options. The report does not address housing supply for the lowest income levels, but rather seeks to make the case for expanding the gap market in order to entice private sector engagement more effectively.

2.1 Report Contents

The report covers the following aspects of housing markets through maps, charts and graphs to highlight understanding across the municipality and at the neighbourhood level, where housing markets function.

1. Housing Performance Profile – the pace of growth by suburb, on maps and in charts, as measured by the Housing Performance Index 2. Market Size – total number and distribution of residential properties, households, values and sales prices, key demographic indicators 3. Market Activity – properties, sales and new properties and resales over time 4. Lending Activity – sales and loans by lender 5. Affordability Profile – affordability based on local incomes, compared to sales price, housing gaps and affordability ratios 6. Leverage – the value of equity available for purchasing new homes 7. Rental Index – those areas most prime for quality, dense professionally managed rental housing

2.2 Definitions and Methodology

For housing supply, title and deeds records were merged at the suburb level, mapped and ranked through the Citymark dashboard. Priority has been placed on actual transaction datasets from familiar sources that can be geocoded to the subplace level, trended over time and updated regularly. For housing demand, StatsSA data was applied as the most consistently collected, widely understood and most common source of demographic data in the country.

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 2.3 Benchmarks

Benchmarks are indicators used to compare performance across areas and are valuable for understanding meaning. Each indicator was created at the local, municipal and national levels in order to measure performance within and across markets. These benchmarks also highlight areas or trends which are outperforming the overall market in certain ways and might be most receptive to a variety of new housing development options.

2.4 Site Visits

As mentioned, the team conducted four site visits to eMalahleni, Randfontein, Westonaria, and Rustenburg. These visits provided the chance to confirm findings from the data and chat informally with residents about their current housing circumstances: where they had moved from; where they were currently living and how affordable it was; and where they were headed, including their ambitions and concerns. This helps to provide a sense of the housing continuum in the town – what choices residents feel empowered by, and what constraints keep them from realising their dreams and aspirations. Residents who were engaged came from informal settlements, brand new RDP homes, and a stalled RDP project, which had recently been reactivated by the city.

Some of the key insights from these site visits were:

•฀ Residents may not know exactly what their home might be worth, but they are very aware that their home has a value, which includes stability and security for themselves and a better future for their families •฀ Many residents use their homes to supplement their own income, including renting shacks and rooms and operating home-based businesses •฀ There might be a relationship between how the houses are handed over and the sense of ownership (as evidenced by improvements to the homes) •฀ Everyone we spoke to understood the importance of a title deed, that the title deed proved (secured) ownership, even if, in a few cases, they were not sure of its status or how to get one •฀ Most people mentioned a better future for their children as an integral part of the importance of homeownership •฀ Residents were aware that there is an acute shortage of housing opportunities and that despite having their homes, they were surrounded by others without adequate housing

Many people understood housing markets around them intuitively — where the better houses were closer to jobs and transportation and what the barriers were — the price, the inconvenience and the cash required to access the houses.

2.5 Using this Report

This report is intended to provide a high-level view of the mining town housing markets overall and by neighbourhood, within areas of particular interest, by measuring and comparing housing market performance amongst each other and with the municipality. This report highlights connections and implications from the findings that are of significant interest to the HDA. The report does not seek to understand why things are, but offers general ideas based on experience with housing markets and new learning about mining town housing markets from these reports.

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report The report findings emphasise opportunity as opposed to risk or failure. Opportunities are defined as conditions or indicators within areas, which can show:

•฀ The ways in which areas or markets are behaving positively (such as growing more quickly), or showing strength (such as stability and consistency) •฀ The ways in which areas can be connected to common strategies that promote growth, investment or sustainability (such as proximity to transit or density) •฀ A more accurate picture of the real value of areas in ways that can leverage economic investment (such as equity, lending levels and new registrations) •฀ Better ways in which risk can be measured and accounted for (such as timing, scale, or location risk) •฀ A more comprehensive scope or scale of markets, to better estimate and project market intervention (such as property or population size, absorption rates, or patterns of behaviour) •฀ Ways to challenge and overcome those perceptions or assumptions that might stymie investment, or slow growth

This report is not intended to provide a complete final picture of market conditions or demographic circumstances. It does not reflect conditions in the informal market, nor general attitudes. It is not intended to be the last word on market potential, but is rather the first: how can current conditions present opportunities for better housing options, and improved market performance? Where are places that might be performing better in some ways, which might provide areas of opportunity, and how? The highest and best use of this report is to suggest new ways to support the growth of affordable housing in South African mining towns, by exploring and reconsidering areas for new investment, expanding existing investment, and promoting policies and programmes which can support and entice that development. It can also imply the impact of ongoing investment and programmes activities.

2.6 About Formal Housing Markets

This report relies on the South African deeds registry as the basis for analysing local housing markets. Thus, the report only measures the formal housing market, which can be defined as those residential properties which have been formally titled to a specific owner or group of owners. While this excludes a large part of the human housing condition in these towns, the advantage of focusing on the formal housing market is that it offers a better understanding of that part of the residential property market, which is most opportune for leverage and investment interventions in ways previously not understood.

Taking into consideration the housing backlog from StatsSA, informal settlements and human mobility, housing markets are quite fluid and difficult to measure. Understanding housing markets more completely is one advantage of the titling initiatives recommended by many housing policy and planning advocates across the country.

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 3. Context 3.1 Municipal and Regional Context

Key aspects of the city are shown from here for contextual purposes which have been published on the city’s website. These aspects are summarised from its 2014 IDP, to give important insights to the market overall:

•฀ “There has been mining activity in Thabazimbi since the 1930’s when iron and steel production started” •฀ “Boundaries of Thabazimbi Municipality include the following areas: Thabazimbi, Northam, Leeupoort, Rooiberg and Dwaalboom” •฀ “Thabazimbi falls under the Waterberg District Municipality” •฀ “Land ownership is mostly traditional; the municipality is predominantly rural with about 62 settlements, most of which are villages” •฀ “The mining sector has shown significant potential to absorb skills, and has also been identified to establish mining opportunities in the small scale mining sector” •฀ “Thabazimbi is one of the Country’s most attractive tourism destinations; agriculture has also proven, in addition to mining, to be the strong economic sector” •฀ “The most dominant economic sector is mining, which contributes over 90% to the municipality’s GVA and 58% to the labour market” •฀ “All other sectors contribute less than 15% each of the GVA and labour market“ •฀ “The area’s economy depends largely on the mining, agriculture and tourism sectors”

3.2 Socio-Economic Profile:

The municipality’s current demographic information is drawn from the HDA Municipal Profiles and from the 2001 – 2011 Census Data:

•฀ “Thabazimbi has a population of 85 234” •฀ “There was a 2.63% population growth between 2001 – 2011” •฀ “The unemployment rate was 20.6% and the youth unemployment rate at 26.9% as measured by Stats SA in the 2001 – 2011 Census Data” •฀ “There are 25,080 households in Thabazimbi and 2,370 agricultural households with a collective average household size of 4 people” •฀ “70.7% live in formal dwellings” •฀ “61.9% of the households have flush toilets connected to a sewerage system, piped water inside the dwelling, weekly refuse removal and electricity for lighting” •฀ “4.2% of the houses are fully owned and paid off” 5

The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 4. Context: Mining Sector Overview

This brief industry profile is provided to help one understand how the mining sector might affect and engage housing in the mining towns. The mining policies are not specific to the towns – that information is not available. This information has been included because of the mineral mined, the regional location or specific city references (this report does not assess programme efficacy or impact).

Thabazimbi is known as the mountain of iron, referring to the iron ore reef which was discovered in 1919. Thabazimbi is located in the Waterberg District Municipality. 4.1 Mining Industry Profile

•฀ “Arcelor Mittal Steel (Arcelor Mittal South Africa) draws much of its raw mineral from Thabazimbi Kumba Iron Ore Mine” •฀ “Thabazimbi municipality is surrounded by platinum producing areas such as Northam Platinum mine and Amandelbult Mine” •฀ “Other minerals produced in the area include Andalusite, which is mined by Rhino Mine and limestone for the production of cement by Pretoria Portland Cement (PPC)” •฀ “The mining sector has significant potential to absorb skills; a need to establish mining opportunities in the small scale mining sector has also been identified” •฀ “Platinum and iron ore mining are major contributors to the economy of the region” •฀ “Most if not all the urban settlements in the municipality were established as mining settlements” •฀ “The major mining settlements in the area are Setaria, Swartklip and Amandelbult” •฀ “The majority of the mines are located between Thabazimbi and Northam”

4.2 Housing in the Mining Sector The remote locations of many mining operations that means mining companies have long histories of providing housing solutions for their employees, from executive management to miners. Different approaches to housing policies vary and are not discussed in specific terms. The knowledge of the general mine housing policies assists one in understanding the effects on the housing markets in their entirety in the towns. Unlike large metropolitan areas where housing markets grew more organically (with some historical master planning involved), these towns were largely designed intentionally to serve the interests of the mining franchises above them. The following is only indicative of each company’s general approach; the housing models in each town are approached differently and more specific to their context. Essentially, understanding the housing options offered by the mining companies is an important factor in understanding local housing markets.

Thabazimbi is located in Waterberg District Municipality and the primary extractive in Thabazimbi is Iron Ore and platinum. The major mining activity in Thabazimbi by mineral is located in: Northam Complex and Zwarrtklip – Platinum; Madikwe – Gold; Dwaalboom and Koedoeskop – Limestone; Maroeloesfontain and Grootfontein – Andalusite and Iron Ore in Donkerpoort.

The prominent mines in Thabazimbi are: Kumba Iron Ore, Dishaba Mine and Tumela Mine, which are owned and managed by Anglo American. Anglo Platinum won a Govan Mbeki Award for the best finance-linked individual subsidy project in Northam, awarded by Cooperative Governance, Human Settlements and Traditional Affairs (CoGHSTA) in May 2012.

Their mine housing policies and examples of other outline mine housing policies the following:

•฀ “Anglo American committed more than R2 billion to facilitate home ownership and achieve the Mining Charter target of ‘one person per room’ through 2014” •฀ “Anglo American currently offers a number of different housing options, ranging from housing allowances to houses built for employees”

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 5. Context: Housing

The municipality has identified the following challenges and opportunities from its 2014/2015 IDP:

5.1 Housing Challenges:

•฀ “ According to Stats SA, Thabazimbi’s housing backlog was 6,643 in 2011” •฀ “Lack of land has hindered 2,079 low income and 1,500 middle income households from receiving subsidies from CoGHSTA” •฀ “The municipality has growing informal settlements due to lack of land” •฀ “The municipality has noted illigal occupants in RDP houses” •฀ “There are lack of services in some RDP houses”

5.2 Housing Strategies: •฀ “The Department of Public Works has donated parcels of land to the municipality to cater for middle income households” •฀ “The municipality has put a housing strategy in place to address the housing backlog”

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 6. Context: Market Reports

6.1 Report Coverage HDA Mining Town reports market coverage Thabazimbi, Data by suburb of census and formal deeds registry data, 2013 It is important to keep in mind that these reports only cover the formal housing market, as captured by the Doorhoek SH Thabazimbi NU Kwaggasvlakte SH Deeds Registry. Thus, there are four

Regorogile Ext 8 layers of information in the report:

Union Section Mine 1. Total StatsSA suburbs

Dwaalboom SP 2. Suburbs with residential properties 3. Suburbs with residential properties Rooiberg Tin Mine Smersha Block Setaria sold Dwaalboom Limestone Mine Northam Platinum Mine 4. Suburbs with residential properties

Rooiberg stone Mine sold with a bond Northam Ext 2 Leeupoort SP Swartklip Mine Northam Ext 5 Majuteng Sitrusvlakte SH Wilderbeestaagte SH This map shows all the census suburbs in the town (pink) to all the suburbs with residential properties with bonded Source: Stats SA Census, 2011, South African Deeds Registry via Lightstone (Pty) Ltd, 2015. sales (dark red). The chart shows what Data coverage percentage of the town has a formal 1 4 residential housing market. This may help explain some of the maps and why some suburbs are included and Thabazimbi Housing Report Coverage some may be omitted. As an example, Total Census Subplaces (SPs) 27 information on bonded sales will only Total SPs with registered residential 13 48% reference suburbs in which bonded properties sales took place. Total SPs with sales 11 41% Total SPs with bonded sales 11 41%

Market Area By The Numbers Suburbs 27 Suburbs with residential properties 13 Households 25 081 Residential properties 6 452 Housing backlog 6 643 Backlog as percent of all properties 103% Households to properties ratio 3.89 Total residential value R2.8 billion Average monthly income R11 700 Average property value R436 500 Average sales price R488 500 Source: Centre for Affordable Housing Finance in Africa, Lightstone, StatsSA

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 7. Key Findings: Housing Market Overview

Thabazimbi’s housing market has experienced some of the highest growth of all mining towns, which appears to be largely attributed to the freehold property market; a robust market in the sale of existing freehold properties. In Thabazimbi, properties with lower values are dispersed throughout the municipality near Government-sponsored housing. The municipality has diverse housing options by market value segment. The market generally seems to be focused on the upper-priced properties; bonded sales in lower-value markets were an extremely small portion of the bonded market until 2013 when they saw the highest percentage of bonded sales. Some areas are spiking, perhaps the result of more recent higher-priced housing development.

Thabazimbi’s affordability ratio is among the lowest of the 22 mining towns. Some formal markets appear to be more affordable to local residents, creating the potential for some areas to have stable formal affordable housing. Due to its below average monthly income, there remain large disparities among incomes and affordable housing access within the municipality. This may prioritise housing strategies and solutions which propose creative financing tools and techniques to reduce financial barriers (such as down-payments, interest rates and principal repayments) as well as unlocking equity, rather than simply trying to push costs downs.

About 40% of all registered properties in Thabazimbi are Government-sponsored. The value of these homes, if sold in the private market, can be applied towards the cost of a new home. The presence of older RDP units within the municipality represent an important opportunity to leverage that investment in affordable housing in the years ahead, as owners seek to sell and move up the housing continuum, if opportunities are positioned properly. Average equity in these areas double purchasing power, putting moderately priced housing within reach of lower-income families. This situation can be used to drive developers to build more gap housing and financiers to finance RDP acquisition loans.

The area has notable diversity and integration of housing values and property types, which suggests a market that is ready to meet a wide range of needs and expectations. Formal mixed-income housing options which offer much-needed internal cross subsidisation to keep prices affordable will likely do very well and this bodes well for a market less reliant on government and mining intervention.

Lending is apparent throughout Thabazimbi. Bonded sales in lower-value segments made up an extremely small portion of the bonded sales. While the share of lending by each of the four major banks in the Country has remained consistent, lending from non-traditional lenders also consistently increased from 2008 — perhaps to make up for the lack of expanded lending by the existing institutions. With the presence of several RDP units, it will be an important strategy to encourage traditional lenders to develop creative loan programmes targeting those homeowners in order to unlock the value of those homes and allow owners to move up the housing continuum.

In Thabazimbi, 46% of households rent, according to the 2011 StatsSA census, which is above average amongst the mining towns in the study. The opportunity for rental housing development within Thabazimbi is strong within specific areas. Those areas with greater density, modest income, and affordability challenges are more likely to support quality, professionally managed affordable rental housing. Rental housing also provides flexibility to employers and workers as mining markets expand and contract from time to time.

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 8. Housing Performance Profile

8.1 Key Findings: Housing Performance Index

The Thabazimbi housing market has experienced stable growth, which seems to be largely attributed to the freehold property market and the increasing urbanisation of previously undeveloped or rural areas within the municipality.

Recent growth has stabilised, creating an opportunity for markets to be carefully assessed in order to best position the next wave of growth. Housing options are not currently diversely distributed across the municipality.

8.2 Policy Implications

With an estimated housing backlog of 103% of all registered residential properties in Thabazimbi, meeting housing demand will be a crucial factor in stabilising the town through this period of growth. In slow growth neighbourhoods, where most of the lower-priced housing currently exists, housing will be built more affordably but will need to be situated well to better integrate housing markets. Site development initiatives should include rental housing to meet the increased demand.

8.3 Quick Definitions:

Housing Performance Index (HPI): provides an understanding of local housing market performance by tracking six key indicators which most effectively convey fundamental components of real estate markets and are then compared to the results for the entire municipal property market to determine areas of growth or strength relative to the entire metro.

Housing Performance Profile: this describes housing market performance of local areas as growing (those areas where the index is 6.5 or higher), stable (the index is 4 or higher) or slow (the index is less than 4) compared to the metro in which it is located.

Formal Housing Market: residential properties that are registered on the South African deeds registry. This does not include informal settlements or other houses otherwise not on the deeds registry.

Indicators: suburb-level measures used to convey a more complete understanding of housing markets, sometimes a point of data (such as number of properties), or a calculated factor (such as the housing index or the affordability ratio).

Housing Continuum: a range of housing options which are available to a wide range of income levels, budgets, housing types and ownership opportunities.

Bonded Sales: the total residential properties that were transacted with a bond collateralised or secured by that property.

New Registrations: residential properties that have never appeared on the deeds registry before. This is an important indicator of the growth of a market, whether the property has just been built or was built previously and never registered.

Churn: an indicator of the sales activity within an area similar to turnover, it is the number of residential sales transactions divided by the total number of properties.

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report Housing Performance Index 8.4 The Housing Performance Index Thabazimbi, 2013 Market growth of six key housing market indicators, compared to the metro These maps below identify the Housing Performance Index by suburb (top) and total residential properties (bottom), to provide a sense of how local property markets are performing compared to the metro as a whole. The Housing Performance Index (HPI) provides a glimpse of the formal housing market only and does not include any demographic information. The

Thabazimbi NU weights were determined by how well the indicator reflects activity, increased investment and demand (and how reliably the indicator can be measured).

Doorhoek SH Regorogile Ext 4 Regorogile Ext 8 Thabazimbi A SP This information is useful in understanding how the Union Section Mine formal market is behaving (which is influenced by the presence of mines, informal settlements and the Setaria Rooiberg Tin Mine people who move in and around the towns). This Northam Ext 2 Majuteng Leeupoort SP picture is intended to help one understand how key Northam Ext 5 housing sector partners (developers, investors) seek and measure opportunity, in order to better inform

Source: Centre for Affordable Housing Finance in Africa, 2015. All indicators reflect formal market data as reflected on the deeds and coordinate Government planning processes and registry.

Housing Performance Profile private sector motivation. Stable Slow Null “Growing” suburbs are areas which exceed the municipality’s rate of change in any four of six key Housing Performance Index market indicators. “Stable” areas meet or beat the Thabazimbi, 2013 Market growth profile by suburb, with property volume municipality in at least three indicators and “Slow” areas are growing at rates less than the municipality Thabazimbi NU Doorhoek SH in two (or fewer) of the six indicators. While an Regorogile Ext 8 Regorogile Ext 4 index provides quick understanding, it is important Thabazimbi A SP Ipelegeng to look more closely at the indicators themselves Union Section Mine to understand more clearly the underlying factors affecting market growth and stability.

Rooiberg Tin Mine Setaria CAHF Housing Performance Index Indicator Measured Implies Weight Price Average Appreciation 25%

Northam Ext 2 Leeupoort SP sales price

Majuteng Northam Ext 5 Value Average Appreciation 25%

Source: Centre for Affordable Housing Finance in Africa, 2015. All indicators reflect formal market data as reflected on the deeds registry. property

Total Residential properties Housing Performance Profile 0 Stable value 500 Slow 1 000 Null Transac- Number of Demand 15% 1 500 2 055 tions sales Percent Bonds per Investment 15% bonded sales Churn Repeat sales Activity 10% as a percent of total properties New New Growth 10% properties properties added to the registry

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report Housing Performance Index Trends 8.5 Performance Over Time Thabazimbi, performance over time relative to the metro, 2007 -2013 7,0 7,5 These charts provide the housing 8,5 Doorhoek SH 4,5 performance index by suburb over time 4,5 1,0 using the six key indicators (price and value appreciation, sales and bonded Ipelegeng 4,0 sales, churn and new properties). 2,5 2,5 2,5 2,5 2,5

5,0 Growth is relative to the metro (and Leeupoort SP 3,5 change from the preceding year), so 0,0 2,5 3,0 1,0 it is important to compare these lines 6,5 to the area’s overall performance 4,0 Majuteng and the direction in which the trends 2,5 0,0 2,5 2,5 are headed. The city’s growth overall

5,0 (below) appears to be stable Northam Ext 2 3,5 3,5 4,0 and growing. 2,5 3,0 Several areas are experiencing Northam Ext 5 stable growth, such as Northam 0,0 0,0 0,0 0,0 0,0 0,0 Ext. 2, and Regorogile Ext 4. Over 8,0 the long term, stability of growth is Regorogile 5,0 5,0 Ext 4 4,0 often a more important consideration, 2,5 2,5 when projecting future performance, than high growth. Notably, lower Regorogile 7,5 Ext 8 4,0 -cost suburbs are more impacted by 4,0 2,5 2,5 2,5 investment and thus their performance 6,5 often outpaces the metro, whether the Rooiberg Tin Mine 4,0 growth is stimulated by Government 2,5 2,5 2,5 2,5 or private sector investment. This information can help inform one how Setaria to create a more cohesive and stable housing continuum, with fewer spikes and drops and where to begin. Thabazimbi A 5,0 5,0 SP 3,5 3,5 4,0 1,0 Areas with no data have no residential properties or sales transactions, such as Thabazimbi 3,5 farms or open space, mines or industrial NU 0,0 0,0 0,0 uses like power generation. 0,0 0,0

Union Section Mine

2008 2009 2010 2011 2012 2013 Source: Centre for Affordable Housing Finance in Africa, 2015. All indicators reflect formal market data as reflected on the deeds registry. Growth Profile Growing Stable Slow Null

Housing Performance Index Trend Thabazimbi, 2008 - 2013. 10,0

Thabazimbi 6,5

2008 2009 2010 2011 2012 2013 Year Source: South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds reg-

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report Key Performance Indicators 8.6 Housing Performance Thabazimbi, 2008 - 2013 Change over time of the six key indicators within the Housing Performance Index Indicators

R 500K R 500K e) R 479K R 488K Six indicators – price and value

ge) R 400K R 436K R 400K appreciation (top orange and blue lines),

Value (blu

R 300K R 329K R 300K rice (oran total sales and bonded sales (middle

R 200K R 200K green bars and brown line), change in

Property

g Sale P

Av new properties and churn (bottom red

Avg R 100K R 100K and blue lines) – are the most telling R 0K R 0K 500 500 448 of growing, active housing property

400 400 markets. The relationship between

(green) tial Sales indicators provides clues as to what 300 300 70% 263 may be driving performance, what that

azimbi

tial Sales 224

Residen

194 (brown) 200 179 179 200 might mean for future development

Thab

57% potential and how it might affect or

al Residen 100 100 al Bonded

Tot 52% 51% 42% 46% Tot be influenced by different housing 0 0 4,1% types, prices or target incomes. While 4% 4% sales and bonded sales appear to have

ties (red) ties 3% 2,8% 3% increased, the city’s growth overall 2,6% ) 2,9% 2,4% 2,3% (see HPI Trend) appears to be stable 2,1%

w Proper 2% 2%

urn (blue despite a recent dip, which seems Ch to be largely attributed to the 1% 1% ange ange in Ne reduced average sales prices.

Ch 0,5% 0,5% 0% 0,3%0,3% 0,3% 0% 2008 2009 2010 2011 2012 2013 Source: SA Deeds Registry from Lightstone. All indicators reflect formal market data as reflect- These charts compare the performance ed on the deeds registry. of three ownership types, namely Key Indicators Avg Property Value freehold, sectional title and estate Avg Sales Price ownership. The market appears to Total Residential Sales Total Bonded Residential Sales be slowing down, consistent with Change in New Properties Churn most markets across the Country. Interestingly, residential properties Key Performance Indicators are selling at prices much higher Thabazimbi, Freehold properties, 2008 - 2013 Change over time of the six key indicators within the Housing Performance Index than their value, which may be the result of significant numbers R 500K R 500K

) R 463K of lower-cost housing R 446K , bringing R 400K R 416K R 400K

(orange) the average (the blue line) down. The

alue alue (blue R 300K R 300K R 311K town’s churn (rate of sales turnover)

R 200K R 200K ale Price and new registrations are very low,

Property V Property

Avg S Avg

Avg Avg R 100K R 100K indicating not much housing activity

R 0K R 0K generally. The number of sales has 353 dropped but has been increasing

green) 300 300 al Sales since 2012; bonded sales have also 242 been increasing

n) . This may be due to 68% 203

zimbi

ial Sales ( 200 200 160 160 167 Residenti sales price increases.

(brow

Thaba 58% 100 100

l Resident

l Bonded 52% 52% 46% 43% Housing markets are very sensitive to

Tota

Tota 0 0 access to credit, so lending information 3,4% will be helpful in understanding this 3% 3%

s s (red) 2,6% 2,3% 2,4% more closely (see Lending below). 2,0% 2,1% 2% 2% Churn rates have steadily dropped

(blue)

Propertie 1,7% (blue line), indicating slower turnover

Churn 1% 1% of existing homes over time as well.

ge ge in New

Chan 0,5% 0,6% 0% 0,2% 0,3% 0,2% 0% 2008 2009 2010 2011 2012 2013 Source: SA Deeds Registry from Lightstone. All indicators reflect formal market data as reflected on the deeds registry.

Key Indicators Avg Property Value Avg Sales Price Total Residential Sales Total Bonded Residential Sales Change in New Properties Churn 13

The Housing Development Agency | Thabazimbi Mining Town Housing Market Report Key Performance Indicators 8.7 Housing Performance Thabazimbi, Sectional Title properties, 2008 - 2013 Change over time of the six key indicators within the Housing Performance Index Indicators by Property Type R 647K R 600K R 600K R 544K

R 543K R 552K ge) Different housing markets perform

lue (blue) R 400K R 400K in different ways, including freehold ice ice (oran (free-standing) homes and sectional

roperty Va roperty title (subunits within a single property).

R 200K R 200K g Sale Pr

Av

Avg P Avg The area is predominantly freehold (see

R 0K R 0K Market Size below), yet sectional title 67

es market and estate activity is growing in reen) 60 60 terms of sales transactions, lending and

79% ential Sal

mbi rates of new properties added to the l Sales (g 40 40 registry (red line).

(brown)

ed ed Resid

Thabazi

Residentia 20 20 1011 11 10 Interestingly, when sales were at their 8 otal Bond

Total Total

T 0 70% 36% 55% 50% 50% 0 highest in 2013, sale prices were 80% 85,6% 80% at their lowest and more aligned to (red) property values. Bonded sales have

60% 60% ) seen a spike in growth in line with

Properties 40% 40%

urn (blue increases in sale of existing properties Ch and higher resale of properties. Bonds e e in New 20% 15,0% 20%

2,4% 4,1% 4,7% 4,0% 3,4% associated with freehold units and

Chang 0% 0,0% 2,4%0,0% 2,3% 0,6% 0% estate units appear to be driving 2008 2009 2010 2011 2012 2013 Source: SA Deeds Registry from Lightstone. All indicators reflect formal market data as reflected the growth in bonded sales overall on the deeds registry. which is steadier than those of Key Indicators Avg Property Value sectional units. Lending on sectional Avg Sales Price Total Residential Sales titles have remained low since 2008, Total Bonded Residential Sales dropping by 29% since 2008, possibly Change in New Properties Churn driving the drop in sales prices as well. Lending is instrumental in the Key Performance Indicators Thabazimbi, Estate properties, 2008 - 2013 growth of housing markets and the Change over time of the six key indicators within the Housing Performance Index ability to access bonds to buy sectional R 1 000K R 928K R 1 000K R 953K title houses has driven the growth of R 800K R 753K R 800K ge) this housing type. Sectional title is R 757K

lue (blue) R 600K R 600K also an important affordable ice ice (oran homeownership option. R 400K R 400K

roperty Va roperty

g Sale Pr

R 200K R 200K Av Avg P Avg Churn rates, or turnover rates (blue R 0K R 0K lines) are the highest in sectional and 30 28 30 es estate properties, suggesting a robust reen) market in the sale of existing sectional

20 75% 20 ential Sal mbi and estate properties. Although l Sales (g 16 13

(brown) sectional title and estate sales are

ed ed Resid

Thabazi 11 9 10 8 10 exceptionally low, the sales that do

Residentia

38% 46% otal Bond occur appear to be more aligned with

Total Total 50% T 0 33% 9% 0 related property values. As markets 15,8% 15% 15% formalise and strengthen, these (red) trends, i.e. property values and 9,7% ) 10% 10% sale prices, inform each other more Properties 7,2% 6,7%

urn (blue effectively and the trend lines 4,8% 5% 4,2% 5% Ch

e e in New become almost parallel over time.

0,6% 0,6% Chang 0,0% 0,0% 0,0% 0,0% 0% 0% 2008 2009 2010 2011 2012 2013 Source: SA Deeds Registry from Lightstone. All indicators reflect formal market data as reflected on the deeds registry.

Key Indicators Avg Property Value Avg Sales Price Total Residential Sales Total Bonded Residential Sales Change in New Properties Churn

14

The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 9. Market Size

9.1 Market Size: Key Findings Thabazimbi’s housing market is essentially three markets: Government-sponsored housing built as part of the national housing initiative over the past 20 years, privately traded and financed homes and informal settlements. Markets are diverse although the diversity is between higher-priced, actively selling private growing markets, with further flung lower-income, non-bonded government sponsored developments and informal settlements (not on the deeds registry) concentrated to the south-west of Elias Motsoaledi.

The need for housing is high. The current estimated housing backlog represents about 103% of the town’s current total formal residential properties. Demand creates opportunities for new housing supply to be positioned between the existing segregated markets to better integrate the town’s spatial, income and housing markets. 9.2 Policy Implications

Existing Government investment in housing can be leveraged to guide new development opportunities, if and when those homes can be sold to new buyers and the proceeds used to purchase new housing further up the housing continuum. As an example, Government might prioritise new development between Government- dominated and private markets for more integration mixed-income sites and fill spatial gaps within the town. Government can use this existing investment to identify areas of future development and entice private sector participation.

The encouragement of the expansion of financing to lower-income families will allow for those homes to be sold and the proceeds then used to support housing development further up the housing continuum.

Rapidly changing housing demand, driven by mining activities, makes a strong case for prioritising quality rental housing. If rental housing is well-situated and convenient to transport and centrally located in dense areas, it can bring social and economic cohesion to housing markets over the longer term.

9.3 Quick Definitions: Market Size: the total number and distribution of important aspects of areas, including average home prices, home values and total households in order to inform the potential scale of housing intervention strategies and the impact of proposed development schemes.

Property Value Segment: in order to better understand the performance of housing markets, data has been aggregated into four property value bands: properties valued under R250 000; between R250 000 and R500 000; between R500 000 and R1.2 million and over R1.2 million. This helps one to understand the various trends and strengths inherent in each segment and to see how properties are integrating across the housing continuum, especially over time.

Freehold / Full Title: a permanent and absolute tenure of land or property by a person or entity (such as a corporation or trust) with freedom to dispose of it at will. Freehold or full Title describes the assumption of full ownership rights when one owns a property, often including the building and the land it is built on.

Sectional Title: separate ownership of units or sections within a complex or development. These are often comprised of mini subtype houses, semi-detached houses, townhouses, flats or apartments and duet houses. These are governed by the Sectional Titles Act and managed by a body corporate comprised of elected representatives from the sectional title owners in the development.

Absorption: the pace with which homes to be developed might be sold in a specific market during a given period of time. This can calculated by dividing the total number of available homes coming on line by the estimated number of sales per month, often based on the rate of sales nearby.

Households to Properties Ratio: the total number of households (as reported by the census) divided by the total number of residential properties on the deeds registry. This is a quick, easy relative indicator of household density and formality of a suburb as compared to other areas.

15

The Housing Development Agency | Thabazimbi Mining Town Housing Market Report Distribution of Properties and Values by Suburb 9.4 Market Size and Thabazimbi, 2013 Government Investment Formal residential properties, informal settlements and mines, by suburb in Housing

Market size measures the distribution of home prices, households and values Thabazimbi NU in order to inform the potential scale of Doorhoek SH Thabazimbi A SP housing intervention strategies and the Union Section Mine impact of proposed developments on the surrounding area. It can also show the impact of Government investment

Setaria Rooiberg Tin Mine in housing markets.

In Thabazimbi, properties with lower Leeupoort SP values are concentrated in the west Northam Ext 5 and coincident with Government investment in housing (map two). It is a very positive fact that so many Source: South African deeds registry via Lightstone (Pty), Ltd; Housing Development Agency informal set- Government-sponsored housing tlements and mines. units are on the deeds registry. Number of Residential properties Type Affordability 0 15 000 Informal Settlement Under R250k Often, these homes are undervalued, 5 000 Between R250k - R500k 10 000 Mines Between R500k - R1.2m for two reasons. The subsidy value was Over R1.2m often noted as the sales price (rather than the cost), or sales prices are driven Number and Percent Government Sponsored Residential Properties low because buyers lack access to credit Thabazimbi, by total residential properties per suburb, 2013 with which to purchase the homes at a more realistic sales price and must pay with the cash they have.

The encouragement of the resale of government sponsored housing is Thabazimbi NU Doorhoek SH an important means of expanding Regorogile Ext 4 Regorogile Ext 8 housing options – for the sellers, who Thabazimbi A SP can move up the ladder with the equity Ipelegeng from the sale of their property, to the Union Section Mine first-time homebuyer purchasing the existing home. More activity in these markets will also raise the value of the home, which is often a family’s most valuable asset.

Rooiberg Tin Mine Setaria

Northam Ext 2 Leeupoort SP

Majuteng Northam Ext 5

Source: South African Deeds Registry via Lightstone (Pty) Ltd. All indicators reflect formal market data as reflected on the deeds registry.

Total Residential properties % Govt Sponsored 0 0% 60% 500 1 000 1 500 2 055

16

The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 9.5 Market Size by Value Segment

These charts provide the total properties within each suburb by property value segment: below R250 000 (which includes most of the Government-sponsored housing); between R250 000 – R500 000; between R500 000 and R1.2 million and over R1.2 million).

Thabazimbi has a wide range of property values throughout the municipality, with a few suburbs hosting only one range of housing values, primarily those with properties under R250 000. While suburbs with similar property markets are clustered near each other, this diversity overall may help to explain the area’s stable market. In small housing markets, Government interventions and programmes must be more targeted, as their impact on the market overall will be greater.

Market Size: Total Properties by Property Value Segment Thabazimbi, 2013 Sorted by suburb, by property value

Regorogile Ext 4 114 1 937

Leeupoort SP 79034 231

Thabazimbi A SP 154 880

Northam Ext 5 793

Northam Ext 2 375 206

Rooiberg Tin Mine 142 60

Regorogile Ext 8 37 169

Doorhoek SH 168

Ipelegeng 75 72

Majuteng 48

Thabazimbi NU 55

Union Section Mine 0

Setaria

0 200 400 600 800 1000 1200 1400 1600 1800 2000 Total Residential Properties Source: SA Deeds data, via Lightstone (pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds registry. Affordability Under R250k Between R250k - R500k Between R500k - R1.2M Over R1.2M

17

The Housing Development Agency | Thabazimbi Mining Town Housing Market Report Market Size: Total Properties by Property Type 9.6 Market Size by Thabazimbi, 2013 Freehold, Sectional Title and Estate properties Property Type Regorogile Ext 4 2 055 Leeupoort SP 1 070 Residential properties are predominantly Thabazimbi A SP 63 166 805 freehold in Thabazimbi. Where those Northam Ext 5 799 sectional title units are located might Northam Ext 2 591 provide important freehold information

Rooiberg Tin Mine 83 147 on where different housing options

Regorogile Ext 8 206 would be best located. Thabazimbi A SP is the only subplace with Doorhoek SH 14425 all three property types, i.e. Ipelegeng 148 freehold, sectional title and estate Majuteng 85 properties; it also has the largest Thabazimbi NU 60 volume of properties above R500 Union Section Mine 0 000. Despite the low number of Setaria 0 residential sectional title and estate 0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 2100 Total Residential Properties properties, churn rates (or turnover Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds registry. rates) are the highest in sectional and Property Type Description Freehold estate properties, suggesting a robust Estate Sectional Title market in the sale of existing sectional and estate properties.

Distribution of Property types Thabazimbi, by total residential properties per suburb, 2013

Thabazimbi NU

Doorhoek SH Regorogile Ext 8 Thabazimbi A SP

Union Section Mine

Rooiberg Tin Min Setaria

Leeupoort SP

Northam Ext 2 Northam Ext 5

Source: South African Deeds Registry via Lightstone (Pty) Ltd. All indicators reflect formal market data as reflected on the deeds registry.

Total Residential properties Property Type Description 0 Estate 1 000 Freehold 2 000 Sectional Title 3 000 4 000

18

The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 9.7 Market Size by Households and Income

The understanding of the distribution of households and incomes within Thabazimbi helps to inform one scale, development impact and programme targets. Census data is useful as the only source of demographic information consistently available at the suburb level and provides interesting insights into local differences.

Areas with high levels of renters (grey bars) also very often have above-average household incomes (for example Ipelegeng SP, Regorogile Ext 8, Doorhoek SH and Thabazimbi A SP). We suggest these high levels of renters might be the combination of mining executives who rent (instead of own) and support staff who rent nearby in backyard accommodation.

Areas with above-average renters and moderate incomes (e.g. Northam Ext 5 and Regorogile Ext 4) might display families ready for more formal rental options.

Ratios of households (from StatsSA) to properties (from the deeds registry) – the red bar – can show degrees of limited supply or informality. The informal settlements have high populations, few registered properties and low incomes. In the case of Thabazimbi NU – which has the highest households-to-properties ratio and average incomes – rental accommodation may be for middle-income mine employees.

Market Size: Households, Properties and Income Thabazimbi, 2013 Total households, renting, total properties, household to property ratio and average monthly income by suburb Households Renting (Grey)

0K 2K 4K 6K 36% Regorogile Ext 4 5,036 2,055 2.5 R 5.3K 29% Thabazimbi NU 4,024 60 67.1 R 7.0K 44% Thabazimbi A SP 2,280 1,034 2.2 R 19.2K 55% Northam Ext 5 1,644 799 2.1 R 5.6K 80% Setaria 794 0 R 19.2K 58% Northam Ext 2 770 596 1.3 R 14.5K 72% Ipelegeng 600 148 4.1 R 9.6K 16% Rooiberg Tin Mine 539 230 2.3 R 7.3K 49% Regorogile Ext 8 439 206 2.1 R 28.5K 9% Leeupoort SP 350 1,070 0.3 R 6.8K 29% Majuteng 256 85 3.0 R 13.1K 58% Doorhoek SH 105 169 0.6 R 31.5K

Union Section Mine 46% 0 R 16.1K 54 Avg =496 Avg= R 14.1K 0K 2K 4K 6K 0K 1K 2K 0 20 40 60 80 R 0.0K R 40.0K

Total Households Total Residential Properties HHs to Properties Ratio Avg monthly HH income

Source: Stats SA Census 2011 (with CPI increase); South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds registry.

19

The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 10. Market Activity

10.1 Key Findings

Sales activity is apparent throughout the municipality; sales dropped across the country after 2008 and have continuously picked up afterwards Thabazimbi, more so in higher priced housing. Bonded sales in lower markets made up an extremely small portion of the bonded market, i.e. until 2013 when they saw the highest percentage of bonded sales.

Thabazimbi has active repeat sales and new sales and this is a positive contributing factor to the stable growth of the market. Property value (the home’s worth) and sales prices are closely related in a few subplaces. In less active markets, sales prices are significantly less than their suggested value.

10.2 Policy Implications

Focus on increasing access to lending, determining what barriers exist to make credit more accessible through lower-cost products, more flexible terms and/or inclusion of existing debt into a mortgage loan product.

Create financing products which can bring down the cost of quality rental housing as an affordable alternative to homeownership for lower-income families.

10.3 Quick Definitions:

Market Activity: performance of key housing property market indicators over time, such as sales, bonds, registrations and churn.

Market Share: the portion of the market according to certain indicators, such as loans, types of properties, or property values.

Property Value Segment: in order to better understand the performance of housing markets, data has been aggregated into four property value bands: properties valued under R250 000; between R250 000 and R500 000; between R500 000 and R1.2 million and over R1.2 million. This helps one to understand the various trends and strengths within each segment and to see how properties are integrating across the housing continuum, especially over time.

Bonded Sale: a transfer of deed on the deeds registry with an associated bond from a lender, including the property as collateral for the bond.

New Sale / New Registration: the appearance of a residential property on the deeds registry for the first time. It might include new construction or previously existing units being recorded for the first time (such as previously built RDP homes).

Resale / Repeat Sales: the sale or transaction of a property which has existed on the deeds registry before (as opposed to a new sale or new registration).

20

The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 10.4 Sales and Bonded Sales by Property Value Segments

Interestingly, in Thabazimbi, the growth in sales and bonded sales appears to have been driven by properties valued between R250 000 and R500 000 (the blue section). Market analyses for 2014 will be key to understanding the sustainability of this trend. The market share experienced a significant decrease in 2013, with a 20% decrease for properties in the above R500 000 segment (orange bar) and a 27% increase in the below R500 000 segment, (the blue bar). This strongly contributed to the below R500 000 segment, (the blue bar), having the highest percentage of bonded sales in the same year. The relationship between sales and bonds shows the importance of access to credit to growing housing markets, in particular the lower-valued segments. The share of bonded loans under R500 000 has increased in 2013 from 1% of the market in 2012 to 53% of the market in 2013. This might be due to increased access to credit to lower-income borrowers, or an increase in access to affordable homes. Policies which help expand access to credit and provide more housing opportunities under R500 000, in the lower bands, can expand sales within that band.

Total Bonded Sales by Property Value Segment Total Sales by Property Value Segment Thabazimbi, 2008 - 2013 Thabazimbi, 2008 - 2013 All residential sales All residential sales 500 500 450 450 4%

8% 400 400

s 350 350

Sale 4%

les 300

300 ntial 10%

ial Sa ial

2% eside 250 250

dent

ed ed R 80% 5% 33% Resi 6% 200

200 Bond 5%

Total 4% 5% 8% otal 8% 8% T 150 77% 1% 150

52% 76% 100 76% 2% 3% 1% 100 56% 9% 10% 2% 80% 76% 8% 77% 50 71% 50 81% 75% 35%

10% 8% 14% 12% 0 9% 8% 24% 22% 13% 0 7% 8% 10% 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds registry. reflect formal market data as reflected on the deeds registry. Property Value Segment Property Value Segment Under R250k Under R250k Between R250k - R500k Between R250k - R500k Between R500k - R1.2M Between R500k - R1.2M Over R1.2M Over R1.2M

21

The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 10.5 Lending per Property Percent of Sales Bonded by Value Segment Thabazimbi, All residential sales, 2008 - 2013 Value Segments 91% 90% This chart shows (by contrast to the previous 82% charts) the percent of bonded sales within the 81%81% 80% various property value segments. The relatively 76% few formal bonded sales in the town make the trend lines move dramatically. 70% 68% Overall, the total sales receiving bonds in 60% Thabazimbi went down over the past six years in all categories, but the drop was onded not evenly experienced. The lowest property 50% values (the green and the blue line) experienced ales B ales the greatest decrease since 2009, perhaps driven 40% by decreased access to credit or decreased

nt of S of nt supply of housing that falls within this segment. 36% Perce 30% However, the lowest property values appear to 25% be recovering since 2012 this may be due to a new development. 20% The upper-priced properties, such as the orange 10% line, continue a steady downward trend, perhaps due to market overexposure or fewer eligible buyers. 0%

2008 2009 2010 2011 2012 2013 The market generally seems to be focused Year on the upper-priced properties with

Market Segment growing interest and activity in the lower Under R250K property segments. Betw R250K- R500K Betw R500K - R1.2M Over R1.2M

Sales by Property Value Segments Thabazimbi, by suburb, 2013 10.6 Sales by Property Value Segments Doorhoek SH Regorogile Ext 8 Thabazimbi A SP This map shows the volume of sales activity Union Section Mine (the size of the dot) by suburb, across the town, by property value segment. Sales are apparent throughout the municipality. Despite the 32% decline in bonded sales to the R500 000 – R 1.2M value segment (orange line in the chart above) the sales activity in Setaria this value segment appear to be the most robust throughout the municipality. The sales which took place in the lower-valued property segments were in areas close to areas with high Government-sponsored housing (such as Leeupoort SP Regorogile). These might be new registrations of Northam Ext 5 those homes.

Access to credit is a significant boost or barrier Source: South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds reg- istry. to housing market growth. While some Total Residential Sales Property Value Segment 0 Under R250k suburbs offer a range of housing price options, 20 Between R250k - R500k pinpointing product prices and types to specific 40 Between R500k - R1.2m 60 Over R1.2m areas, especially considering local affordability, is 76 important in ensuring programme success.

22

The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 10.7 Sales by New and Repeat Sales

An important distinction in market performance is the sale of new homes (which have never appeared on the deeds registry) and the resale of existing homes. The chart shows new (green) and repeat sales (orange) by suburb. In most mining towns, new registrations are clustered in only a few suburbs. In Thabazimbi, almost all subplaces had new registrations.

New sales can also show the recent registration of Government-sponsored housing investment. An important point is to recognise the impact of newly registered Government investment in housing. Often, these registrations may be perceived as being a market distortion but the deeds issued on Government-sponsored housing represent real assets which now can be traded and loaned against and are key to moving up the housing ladder. Thus, the housing market has in fact grown.

Suburbs with no data reflect areas with no sales or new registrations.

Total Sales by Sales Type Thabazimbi, 2013 New and repeat sales 8 Doorhoek SH 15 0 Ipelegeng 5 47 Leeupoort SP 0 1 Majuteng 0 21 Northam Ext 2 55 1 Northam Ext 5 0 3 Regorogile Ext 4 0 8 Regorogile Ext 8 8 15 Rooiberg Tin Mine 2 Setaria

43 Thabazimbi A SP 4 0 Thabazimbi NU 27 Union Section Mine

0 20 40 60 Total Residential Sales Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds reg- istry.

Measure Names Total Repeat Sales Total New Sales

23

The Housing Development Agency | Thabazimbi Mining Town Housing Market Report Sales Trends by Sales Type 10.8 Market Activity Thabazimbi, 2008 - 2013 amongst New and New and Repeat Sales 68 Repeat Sales

Doorhoek SH 21 The growth and maturity of housing 17 12 12 11 16 4 7 15 markets can often be found by 17 8 comparing new and resale market 5 5 5 transactions over time. The growth Ipelegeng of existing home sales (the orange line)

0 10 0 0 indicates sustained interest of housing

64 markets by borrowers and lenders. 45 47 47 The thicker lines reflect areas with Leeupoort SP 45 39 more sales. 2 0 1 0 0 0 Often, volumes of new homes in 4 53 5 prior years become resales in later Majuteng 1 years. As an example, Thabazimbi 1 02 0 1 10 A SP had a small uptick in resales in 43 55 2010, after a spike in new sales in

25 2008. Understanding how mining Northam Ext 2 20 21 companies create new units helps one 213 0 3 14 9 understand their existing and potential

1 contribution to expanding the local housing economy. Northam Ext 5 0

7 9 6

Regorogile Ext 4 6 3 1 1 30 0 0 0 16 11

Regorogile Ext 8 5 8 8 9 4 7 1 7

15 11 11

Rooiberg Tin Mine 10 9 9 1 0 0 0 2 1

Setaria

96 69 68

Thabazimbi A SP 43 55 4411 506 10 7 4 27

Thabazimbi NU

0 01 00 01 0

Union Section Mine

2008 2009 2010 2011 2012 2013 Year

Sales Type Total New Sales Total Repeat Sales

24

The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 10.9 Total Sales by Property Value, Change From The Prior Year

This chart shows the change in activity for property sales and bonded property sales from 2012 to 2013. It is possible to see important market shifts by comparing the change in activity within particular property markets from one year to the next.

All bonded sales took place throughout the municipality, all of which were in the R250 000+ segment. The highest change in sales has been in the under R250 000 segment, interestingly with bonds associated with this value segment.

Suburbs with no information had no residential sales transactions in the past two years.

Market Activity: Total Sales and Change in Sales Thabazimbi, 2012 - 2013 Change in residential and bonded sales Doorhoek SH 23 -18% 11 -8%

Ipelegeng 5 25% 0

Leeupoort SP 3 41 12 1 -100%

Majuteng 1 -75% 1 0%

Northam Ext 2 21 54 1250% 10 48

Northam Ext 5 1 0

Regorogile Ext 4 1

Regorogile Ext 8 124 300% 3 2 200% 100%

Rooiberg Tin Mine 14 2 133% 6 1 -100% 200%

Thabazimbi A SP 16 31 15 12 -64%

Thabazimbi NU 27 26 0 10 20 30 40 50 60 70 80 0% 500% 1000% 0 10 20 30 40 50 60 -100% 0% 100% 200% 300% Total Residential Sales Change in Residential Sales Total Bonded Residential Sales Change in Bonded Residential Sales

Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds registry. Property Value Segment Between R250k - R500k Between R500k - R1.2M Over R1.2M Under R250k

25

The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 10.10 Change in New and Repeat Sales

This chart shows the specific rate of activity of new and resale properties from 2012 to 2013. Many of the developments built by the Government are heading into their 8th year and become eligible for resale by their owners.

Many of the developments built by the government are heading into their 8th year, and become eligible for resale by their owners. By understanding when those units come on line for resale, Government can align policies that encourage the sale and development nearby, which can help leverage that prior investment, expand housing options and stimulate movement up the next rung on the housing ladder. Resales are an important means of recycling existing homes to make available more housing options.

Suburbs with no information had no residential sales in the past two years.

Market Activity: Total Sales and Change from previous year Thabazimbi, 2012 - 2013 Change in new and repeat sales

Doorhoek SH 8 -27% 15 -12%

Ipelegeng 0 5 0%

Leeupoort SP 47 0% 0

Majuteng 1 -80% 0 -100%

Northam Ext 2 21 -16% 55 511%

Northam Ext 5 1 0

Regorogile Ext 4 3 -50% 0 -100%

Regorogile Ext 8 8 14% 8 60%

Rooiberg Tin Mine 15 67% 2 100%

Setaria

Thabazimbi A SP 43 -37% 4 -43%

Thabazimbi NU 0 27

Union Section Mine

0 20 40 -100% 0% 100% 0 20 40 60 0% 500% Total Repeat Sales Change in Repeat Sales Total New Sales Change in New Sales

Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds registry.

26

The Housing Development Agency | Thabazimbi Mining Town Housing Market Report Market Activity: Average Property Values and Sales Prices 10.11 Average Property Thabazimbi, 2007 - 2013 Values and Sales Price Property value and sales price by suburb R 794K R 566K The relationship between local sales

Doorhoek SH R 602K prices (orange lines) and average property values (blue lines) can tell much about R 294K the activity and integration of supply and R 376K demand. Every house in a suburb has a R 245K value1, determined by the number of sales, Ipelegeng changes in prices, churn (repeat sales) and R 130K R 48K other factors present in a robust housing R 432K R 553K market. Only houses that have been sold R 475K have sales prices but this lowers the value R 431K Leeupoort SP of homes in markets with fewer sales.

As markets formalise and strengthen, R 380246K these trends inform each other more R 192K Majuteng effectively and the trend lines become R 197K almost parallel over time (such as Thabazimbi A SP and Leeupoort SP). R 425K R 544K

Northam Ext 2 R 393K Rising sales prices in affordable areas can R 331K reflect improved access to credit as well as increasing interest in the neighbourhood. R 500K Northam Ext 5

R 45K R 57K

R 230K R 130K Regorogile Ext 4 R 91K R 113K

R 1 041K R 789K R 915K Regorogile Ext 8 R 572K

R 917K R 638K R 501K Rooiberg Tin Mine R 469K

Setaria

R 749K R 961K R 867K Thabazimbi A SP R 590K

R 343K R 239K R 295K Thabazimbi NU R 260K

Union Section Mine

2008 2009 2010 2011 2012 2013 Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds reg- Measure Names Avg Property Value Avg Sales Price

27

The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 11. Lending Activity

11.1 Key Findings

Lending is apparent throughout the municipality in Thabazimbi. Bonded sales are almost entirely concentrated in properties over R500 000, although bonded sales in lower markets made up an extremely small portion of the bonded market until 2013. While the share of lending by each of the four major banks in the Country has remained consistent, lending from non-traditional lenders in Thabazimbi has also consistently increased from 2008 to 2013, perhaps to make up for the lack of expanded lending by the existing institutions.

11.2 Policy Implications

Policies and programmes should target expanding access to credit, including the creation of new funds, with broader investment guidelines and possibilities and small loan programmes with which to make financing more accessible to lower-income households. Existing lenders should take lower incomes into account by reducing finance costs.

Loans to entice the development of more middle-market housing would create more integrated markets. Financing, to build affordable rental housing options, could offset some of the credit accessibility issues in the market overall.

11.3 Quick Definitions:

Lending Activity: the performance of key lending indicators over time, such as bond volume, new loans and bonded sales, by lending institution.

Portfolio Size: the total number and value of loans given out by particular lending institutions in the study area.

Property Value Segment: in order to better understand the performance of housing markets, data has been aggregated into four property value bands: properties valued under R250 000; between R250 000 and R500 000; between R500 000 and R1.2 million; and over R1.2 million. This helps one to understand the various trends and strengths inherent in each segment and to see how properties are integrating across the housing continuum, especially over time.

Residential Bond: a loan made for the intention of acquiring a property, which is secured by the title to the property. These are determined by the property address and the timing with which bonds and sales transactions are recorded on the deeds registry.

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report All Loans by Lender 11.4 Lending Over Time Thabazimbi, 2008 - 2013 Total value of residential bonds by lender Loan data taken from the deeds registry can provide lending R 1 000M activity by lender, which has R 328M R 312M grown consistently in the area. By R 800M R 300M R 288M comparing the top chart (all loans R 279M held by each lender), to the bottom R 265M R 262M R 600M R 233M chart (activity by lender per year), R 217M R 213M R 179M it’s possible to see that while the R 166M R 111M R 115M R 400M R 110M lending in the area has consistently R 108M R 98M R 105M grown, the amount per year R 296M R 256M R 278M varies from lender to lender R 200M R 229M R 199M R 218M (for example, FNB’s increased R 0M R 57M R 62M R 69M R 80M R 91M R 92M investment in 2010 and 2013). 2008 2009 2010 2011 2012 2013 The real game changer has been Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds registry. the infusion of other lenders into Banks ABSA the area; which has increased their FNB portfolio significantly since 2008, Nedbank Standard Bank SA despite a drop in 2013. Most of Other Lenders these lenders are employers in the area offering home loans to their employees, often in conjunction New Loans by Lender Thabazimbi, 2008 - 2013 with the growth of mining activity Total value of residential bonds by lender in the area.

160M These other lenders primarily include companies providing home R 43M loan benefits to their employees. 140M

The following charts explore 120M lending by bank-by-suburb to

R 33M understand more specifically where 100M bank investment has been made by suburb and what that may

80M mean about financing availability R 26M for various development sites and scenarios. 60M R 8M R 16M R 12M R 15M R 12M 40M R 15M R 13M R 34M R 30M R 61M R 7M R 27M 20M R 21M R 4M R 18M R 11M R 19M R 11M R 11M 0M R 5M R 7M R 1M 2008 2009 2010 2011 2012 2013 Source: South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds registry.

Lenders ABSA FNB Nedbank Standard Bank Other Lenders

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report Market Share by Lender: All Residential Bonds 11.5 New Loans by Lender Thabazimbi, all loans, by suburb by lender, through 2013 As markets shift, different lenders Thabazimbi NU Doorhoek SH respond in different ways. These maps Regorogile Ext 8 show the previous bar charts on a map. Regorogile Ext 4 Ipelegeng The first chart – all loans by lender – is represented on the top map. All loans made in 2013 – the second chart – is shown on the lower map. By comparing the two maps, it’s possible to see where lenders invested loans in the last year Rooiberg Tin Mine (slices in the bottom map) and how that has changed from their overall portfolio in that suburb (slices in the top map).

Northam Ext 2 An important trend to note is the rise Leeupoort SP of “other” lenders and the growing Majuteng Northam Ext 5 portions of the market they are active in; Source: South African Deeds Registry via Lightstone (Pty) Ltd. All indicators reflect formal market data as reflected on the deeds registry. for example in Doorhoek and Regorogile, Total Residential Bonds Lenders 0 ABSA in 2011 and 2010 respectively, more than 200 FNB half of the lending is by other lenders. 400 Nedbank 600 Standard Bank ≥ 800 Other Lenders Non-traditional lenders, such as private equity funds and employer lenders, have Market Share by Lender: New Loans 2013 more flexible regulatory environments Thabazimbi, all new loans made, by suburb by lender, 2013 and more creative, competitive financing tools. It will be important for Government

Doorhoek SH to engage these investors as well to Thabazimbi NU Regorogile Ext 4 ease access to credit, lower costs of

Regorogile Ext 8 financing and share in the commitment Thabazimbi A SP towards growing housing markets in the mining towns.

The areas with no dots have no residential properties on the deeds registry – they are farms or open space, mines or power plants, or informal settlements. Rooiberg Tin Mine

Northam Ext 5 Leeupoort SP

Majuteng

Source: South African Deeds Registry via Lightstone (Pty) Ltd. All indicators reflect formal market data as reflected on the deeds registry.

New Residential Bonds Lenders 0 ABSA 20 FNB 40 Nedbank 58 Standard Bank Other Lenders

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report New Loans by Lender 11.6 Market Share Thabazimbi, 2008 - 2013 The value of new bonds by lender by suburb over time Understanding market share at the Thabazimbi local level is key to understanding the Standard Other ABSA FNB Nedbank Bank Lenders potential for end user finance, where Doorhoek SH 2008 R 7,017,000 R 3,762,500 R 2,388,557 R 3,388,800 R 0 gaps might exist and how to make 2009 R 1,813,500 R 1,092,420 R 1,451,393 R 1,971,388 R 740,000 2010 R 2,087,800 R 1,795,675 R 135,050 R 1,469,100 R 790,000 the case for more lending. Almost 2011 R 0 R 399,200 R 0 R 2,020,000 R 3,560,000 all subplaces have seen consistent 2012 R 535,500 R 2,612,750 R 0 R 2,582,390 R 2,940,000 lending over the past six years. Much 2013 R 2,189,500 R 2,347,660 R 815,700 R 670,500 R 520,000 Ipelegeng 2008 R 0 R 80,000 R 0 of the growth in lending in 2013 was 2009 R 0 R 550,000 R 0 associated with the Rooiberg tin mine. 2010 R 0 R 0 R 0 2011 R 0 R 0 R 0 The Thabazimbi NU (non-urban) is a 2012 R 0 R 0 R 0 subplace which surrounds the town, 2013 R 0 R 0 R 0 so it’s not possible to designate where Leeupoort SP 2008 R 5,399,000 R 1,521,000 R 3,449,799 R 1,321,800 R 73,900 2009 R 1,787,500 R 535,000 R 1,297,048 R 405,000 R 0 those loans were located in town, but 2010 R 1,000,000 R 325,000 R 265,692 R 1,207,500 R 1,080,000 perhaps near the tin mine as well. 2011 R 1,549,000 R 1,230,000 R 570,000 R 3,851,500 R 640,000 2012 R 3,125,000 R 1,250,000 R 450,000 R 1,150,000 R 450,000 2013 R 1,600,000 R 1,025,000 R 545,700 R 2,382,000 R 0 Comparing lending over time and Majuteng 2008 R 216,000 R 181,094 R 0 R 370,000 R 63,000 by suburb also shows which lenders 2009 R 0 R 610,000 R 0 R 3,090,000 R 0 2010 R 0 R 1,860,000 R 368,133 R 0 R 0 perceive value or risk. 2011 R 0 R 250,000 R 0 R 0 R 0 2012 R 0 R 237,500 R 0 R 0 R 0 2013 R 0 R 380,000 R 0 R 0 R 0 Northam Ext 2 2008 R 8,959,025 R 11,541,132 R 4,948,395 R 16,686,034 R 0 2009 R 2,548,951 R 2,345,000 R 1,730,608 R 250,000 R 2,230,000 2010 R 460,000 R 21,450,000 R 680,557 R 1,174,500 R 590,000 2011 R 0 R 1,150,000 R 817,938 R 7,061,500 R 0 2012 R 1,647,500 R 408,812 R 845,700 R 4,411,000 R 1,940,000 2013 R 4,250,504 R 10,768,121 R 590,700 R 2,583,000 R 280,000 Northam Ext 5 2008 R 0 R 0 R 0 2009 R 0 R 0 R 60,000 2010 R 0 R 0 R 0 2011 R 0 R 0 R 0 2012 R 0 R 0 R 0 2013 R 0 R 0 R 0 Regorogile Ext 2008 R 0 R 150,318 R 201,938 R 212,000 R 0 4 2009 R 0 R 0 R 0 R 477,000 R 0 2010 R 0 R 160,000 R 0 R 435,500 R 700,000 2011 R 0 R 0 R 0 R 145,000 R 300,000 2012 R 0 R 0 R 0 R 0 R 0 2013 R 0 R 0 R 0 R 490,000 R 0 Regorogile Ext 2008 R 2,967,416 R 1,643,700 R 2,695,589 R 4,725,000 R 1,200,000 8 2009 R 1,361,000 R 2,542,500 R 1,103,474 R 1,977,800 R 1,030,000 2010 R 1,740,000 R 1,450,000 R 0 R 2,196,001 R 700,000 2011 R 2,347,250 R 125,000 R 0 R 4,440,170 R 0 2012 R 1,530,000 R 0 R 0 R 520,400 R 0 2013 R 942,000 R 1,200,000 R 0 R 1,532,000 R 0 Rooiberg Tin 2008 R 1,980,000 R 882,000 R 354,251 R 810,000 R 0 Mine 2009 R 630,000 R 520,000 R 0 R 0 R 0 2010 R 238,000 R 0 R 0 R 550,000 R 310,000 2011 R 1,400,000 R 0 R 0 R 450,000 R 0 2012 R 0 R 1,375,000 R 0 R 200,000 R 0 2013 R 0 R 2,451,000 R 250,000 R 0 R 0 Thabazimbi A 2008 R 16,664,460 R 13,812,450 R 11,608,024 R 33,185,855 R 850,000 SP 2009 R 6,426,400 R 5,212,500 R 1,379,278 R 9,717,750 R 620,000 2010 R 2,888,068 R 7,320,000 R 1,467,334 R 4,238,500 R 3,130,000 2011 R 6,451,000 R 500,000 R 0 R 9,292,078 R 6,190,000 2012 R 5,273,200 R 9,541,702 R 0 R 12,378,700 R 5,660,000 2013 R 5,744,450 R 7,523,000 R 1,580,000 R 9,956,500 R 620,000 Thabazimbi NU 2008 R 0 R 0 R 0 2009 R 0 R 0 R 0 2010 R 0 R 0 R 0 2011 R 0 R 0 R 0 2012 R 0 R 0 R 0 2013 R 1,602,810 R 4,202,891 R 979,631

Source: South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds registry.

Banks ABSA FNB Nedbank Standard Bank Other Lenders

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 12. Leverage

12.1 Key Findings

The presence of older RDP units within the municipality represent an important opportunity to leverage that investment in affordable housing in the years ahead, as owners seek to sell and move up the housing continuum if opportunities are positioned properly. About 40% of all registered properties in Thabazimbi are Government-sponsored, making it the fourth highest of all mining towns studied. The value of these homes, if sold in the private market, can be applied towards the cost of a new home.

This situation can be used to drive developers to build more gap housing and financiers to finance RDP acquisition loans.

12.2 Policy Implications

Policies should focus on enticing developers to build more housing in the gap market and encourage lending to the RDP and other lower-cost home markets.

To encourage an increase in the supply of gap housing, Government can unlock sites, supply infrastructure or grants, or hook-up fee discounts. Government can also reduce the cost of construction finance, which can all be passed down to the buyers in the form of lower sales prices.

Government can create programmes using funds pooled from a range of Government and private sector partners, that provide bonds for small properties and offset risks through loan guarantees, loan loss reserves and interest rate discounts. Funds can also be organise to implement homebuyer counselling, debt consolidation and moderate rehab costs of the existing home to ensure loan performance of the portfolio.

These programs would work together in the mining towns to create better social, housing and economic integration.

12.3 Quick Definitions:

Leverage: the ability to use the percentage of the property that has been paid off as a down-payment for another property

Equity: the value of the residential property less the outstanding balance of the bond. This represents the value of ownership built up in a property and is often used as the down-payment for the owner’s next house purchased up the housing ladder.

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 12.4 Equity Fills the Gap

Equity is the value of one’s home less the amount owed to the lender. The chart shows the average equity per suburb (the green bar) compared to the average sales price per suburb. This helps to show what portion of the sales price might be paid for by homeowners’ equity. If a homeowner in Doorhoek wished to purchase a home in Thabazimbi A SP, they could sell their home and apply the equity towards the cost of the new home, reducing the amount they would have to borrow. Instead of borrowing over R867 000 (the average sales price), they would only need about R320 000 (the orange bar in Thabazimbi A SP minus the green bar in Doorhoek). Thus, equity makes homeownership in higher-priced neighbourhoods affordable, expanding housing options. Equity closes the housing gap for less affluent homeowners because their properties are less likely to have a bond and those markets have experienced more appreciation of value. It is important to consider this value in addition to a homeowner’s income.

Equity invested by homeowners also reduces risk by increasing their financial stake in their home. This is the same way upper income families move up the housing continuum and is now available at scale for lower-income families as well, thanks to the massive Government investment in homes for the poor. This requires financing available for the lower- income buyers, something to explore with lender partners.

While averages in such diverse housing markets are hard to consider meaningfully, the picture does indicate that purchasing power increases – and gaps close – when equity is taken into consideration.

Average Equity to Average Sales Price Thabazimbi, 2013 The value of average home equity related to the average sales price

Doorhoek SH R 547K R 602K R 130K Ipelegeng R 372K

R 475K Leeupoort SP R 483K

Majuteng R 113K R 380K

R 331K Northam Ext 2 R 292K

Northam Ext 5 R 57K R 500K

Regorogile Ext 4 R 126K R 230K R 572K Regorogile Ext 8 R 683K R 469K Rooiberg Tin Mine R 482K

Thabazimbi A SP R 624K R 867K R 260K Thabazimbi NU R 244K

R 0K R 100K R 200K R 300K R 400K R 500K R 600K R 700K R 800K R 900K Avg Sales Price Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds registry.

Measure Names Avg Sales Price Avg Value of Residential Equity

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 12.5 Accessing Equity Closes 5 Year Equity Growth Thabazimbi, 2013 the Housing Gap and Can Rates of equity growth, since 2007 to 2013 Drive Demand

Thabazimbi NU Regorogile Ext 4 Doorhoek SH Understanding the difference in equity Regorogile Ext 8 Thabazimbi A SP growth rates on a map allows a better Ipelegeng understanding of which property markets Union Section Mine can be leveraged to support more new development. Many higher-priced areas have experienced modest equity growth (grey areas) – or loss (red areas) – over the past five years, likely due to increasing sales prices (rather than amortisation as new Rooiberg Tin Mine Setaria buyers tend to have less equity and this market has been very active recently).

The greatest equity growth over five years Northam Ext 2 (green areas and green lines) has been in Leeupoort SP Northam Ext 5 Majuteng less developed areas with fewer sales, and values have accrued to the existing Source: Stats SA Census, 2011, South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators re- flect formal market data as reflected on the deeds registry. homeowners. Homes worth less than

Total Residential properties Avg value of Equity R500 000 typically have fewer loans, 0 500 1,75% 50,00% a faster-growing value, and an initial 1 000 housing cost that was low or free (thanks 1 500 ≥ 2 000 to Government investment in housing). Homebuyers can reduce the amount they have to borrow through savings or the Growth in Equity equity in their home, if they have an existing Thabazimbi, 2008- 2013 house that they can sell. This lowers their The change in the value of average home equity from monthly payment or increases the price 2008 they can afford. Leverage is the practice of using this equity to increase their housing affordability. This indicator thus becomes 40% 37%41% very useful for meeting – and closing – the housing gap.

quity 30% Constraints to using leverage in affordable

tial E tial 30% housing markets include the availability of 30% credit for potential buyers to pay the full iden value of the house, maximising the equity 21% available to the homeowner, the availability f Res f 20% of homes up the housing ladder to buy 20% and, in the case of RDP owners, the ability lue o lue to sell Government-subsidised stock (which 12% comes with an eight-year resale restriction).

in Va in 10% Other constraints include household 11% indebtedness and the willingness of

ange existing homeowners to sell their most 2% important asset. Ch 0% 3% 0% 0% 2008 2009 2010 2011 2012 2013 Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds registry. Change in Equity Affordable properties (under R500 000) All residential properties

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 13. Affordability Profile

13.1 Key Findings

At 1.58, Thabazimbi’s affordability ratio is lower than both the national (3) and the mining town (2.8) averages. Despite above-average incomes, large disparities among incomes and affordable housing access remain.

In some areas, sales prices used to determine affordability are very low, probably the result of lack of credit access, forcing sellers to sell for whatever cash might be offered regardless of how much the house may be worth. In many areas of town, there are simply no sales.

13.2 Policy Implications

Affordability constraints, due to below-average incomes, can be addressed through housing strategies and solutions that propose creative financing tools and techniques which can reduce financial barriers (such as down-payment assistance, interest rates and principal requirements) as well as unlocking equity rather than simply trying to push costs down.

Lowering the cost of financing can also increase the amount that can be borrowed, which can increase sales prices and the amount of equity a home seller will be able to access to buy their next home.

Lack of adequate affordable supply in areas with very low incomes can often be quickly addressed through the carefully considered provision of well-located, quality rental housing.

13.3 Quick Definitions:

Affordability: affordability is generally defined as the ability to allocate less than 25-30% of a household’s monthly income towards housing costs. While upper-income families’ incomes enable them to cover the cost of producing and selling housing units and thus providing many housing options, lower-income families struggle because their income often does not adequately cover the cost of producing and selling a housing unit. Supply is limited and others must collaborate to provide decent affordable housing.

Affordability Ratio: the purchasing power of local incomes to afford local sales prices. The local average sales price is divided by the target house price. This shows the relationship between local incomes and local sales prices – a larger number means that local sales prices are harder for local incomes to afford, implying a mismatch between local housing options and residents.

Housing Gap: the shortfall between the target house price a household can afford and the sales price (or construction cost) of a house. This can be calculated by the difference between the target affordable price and the cost or price of the house.

Target House Price: the sales price affordable to local households, which is calculated using the average area median income available for housing (25% of monthly income) using standard underwriting criteria (typically 20 year amortisation at 11%, with 5% down).

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 13.4 Affordability

Actual affordability relies on the understanding of local household income to determine what is reasonably afforded by existing residents, how much of a gap exists and what is required to ensure more realistic affordability. The Affordability Ratio is determined by dividing the purchase price affordable to the average household income, by the average sales price. Nationally, it takes three times the average income to afford the average sales price, and the average ratio for mining towns is 2.8. This doesn’t mean that families are paying that, it means that most homes on the deeds registry are not affordable to the majority of South Africans. However this indicator provides an important benchmark, by providing a degree of affordability. We can measure that disparity at the local level as an indicator of how well local markets might be catering to local residents.

In Thabazimbi, formal markets appear more affordable to local residents – except Northam Ext 5 which, at 3.4, has the highest affordability ratio in Thabazimbi – creating the potential for a fairly stable formal housing market. Some areas have very high gaps, perhaps the result of more recent higher-priced housing development. The introduction of new products or strategies is more likely to be sustainable if they are responsive to current residents.

The target home price in column 2 can also be compared to estimated potential per-unit construction costs to determine the amount of subsidy which may be required to build and sell the units to local residents. Areas with no data had no sales.

Mind the Gap Table Thabazimbi, 2013 Affordability indicators per suburb

Avg Monthly Target house Average Affordable Affordability Subplace Name Income price Sales Price Price Gap Ratio

Doorhoek SH R 31K R 831K R 602K R 229K 0.7

Ipelegeng R 10K R 253K R 130K R 122K 0.5

Leeupoort SP R 7K R 179K R 475K R -296K 2.7

Majuteng R 13K R 346K R 380K R -34K 1.1

Northam Ext 2 R 15K R 383K R 331K R 52K 0.9

Northam Ext 5 R 6K R 149K R 500K R -351K 3.4

Regorogile Ext 4 R 5K R 139K R 230K R -91K 1.7

Regorogile Ext 8 R 28K R 751K R 572K R 179K 0.8

Rooiberg Tin Mine R 7K R 193K R 469K R -276K 2.4

Setaria R 19K R 507K

Thabazimbi A SP R 19K R 506K R 867K R -361K 1.7

Thabazimbi NU R 7K R 185K R 260K R -76K 1.4

Union Section Mine R 16K R 426K

Source: StatsSA Census 2011 (with CPI increase); South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal mar- ket data as reflected on the deeds registry.

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 13.5 Mind the Gap

This chart is identical to the previous chart but shows bar lines to better visualise difference across the area. These tables measure relative affordability for each suburb in the target area in three ways: starting with the average income (column 1), it calculates the average sales price affordable to the average family using standard underwriting terms (5% down, 11% for 20 years, up to 25% of household income, column 2). It compares that to the area’s average sales price (column 3). Column 4 (“Affordable Price Gap”) shows the difference between the average sales price and the local target (affordable) house price. Column 5 divides the two values to show the affordability ratio, the number of times it might take the local income to afford the local sales price. As an example, in Leeupoort, it takes 12 times the average income to afford the average sales price.

In Thabazimbi, the average income is about R11 700. Where income is earned, the average target house price is R310 000 (how much house that income can afford) and the average sales price is R488 000. Thus in 2013, it took 1.58 times the average income to afford the average house. These very high level indicators are useful when comparing affordability, to see which areas are more or less affordable. This helps one to understand how housing strategies need to address affordability within the town, including what resources or policies might be required to help fill these gaps (i.e., affordable financing, buyer subsidies).

When affordability is an issue, perhaps equity of existing homeowners can help fund the gap. Policies will need to encourage the sale of lower-cost homes that can allow housing purchases further upstream for lower-income households.

Mind the Gap Chart Thabazimbi, 2013 Affordability indicators per suburb

Doorhoek SH R 31K R 831K R 602K R 229K 0.7

Ipelegeng R 10K R 253K R 130K R 122K 0.5

Leeupoort SP R 7K R 179K R 475K R -296K 2.7

Majuteng R 13K R 346K R 380K R -34K 1.1

Northam Ext 2 R 15K R 383K R 331K R 52K 0.9

Northam Ext 5 R 6K R 149K R 500K R -351K 3.4

Regorogile Ext 4 R 5K R 139K R 230K R -91K 1.7

Regorogile Ext 8 R 28K R 751K R 572K R 179K 0.8

Rooiberg Tin Mine R 7K R 193K R 469K R -276K 2.4

Setaria R 19K R 507K

Thabazimbi A SP R 19K R 506K R 867K R -361K 1.7

Thabazimbi NU R 7K R 185K R 260K R -76K 1.4

Union Section Mine R 16K R 426K Avg = R 14K Avg = R 373K Avg = R 438K Avg = 1.6 R 20.0K R 40.0K R 0K R 500K R 1,000K R 0K R 500K R 1,000K R -500K R 0K R 500K 0.0 1.0 2.0 3.0 4.0 Avg Monthly HH income Target house price Avg Sales Price Affordable Price Gap Affordability Ratio

Source: StatsSA Census 2011 (with CPI increase); South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds registry.

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report Affordable Suburbs by Average Sales Price 13.6 Mapping Affordability Thabazimbi, Suburbs by average sales price and household size, 2013 These maps show the importance of taking local household income, or purchasing power, into the understanding of affordability. The Thabazimbi NU Doorhoek SH first map shows average sales prices by Regorogile Ext 4 Regorogile Ext 8 suburb, with the darker areas having Thabazimbi A SP Ipelegeng higher prices. The second map shows Union Section Mine the same area by affordability ratio, the darker areas (those with higher affordability ratios) showing greater difference between suburb incomes and suburb sales prices. While some areas appear affordable by sales Rooiberg Tin Mine Setaria price (such as Regorogile Ext 4), they are not as affordable when considering local incomes (the darker green on the second map). These analyses do not take into account Northam Ext 2 Leeupoort SP the indebtedness of potential buyers, Northam Ext 5 Majuteng an important factor in determining bond eligibility. Rental housing, therefore, might be an important option towards providing well-located

Source: Stats SA Census, 2011, South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market and professionally managed affordable data as reflected on the deeds registry. housing in those areas. Total Residential properties Sales Price 0 500 100 000 500 000 1 000 The areas with no dots have no residential 1 500 2 055 properties on the deeds registry – they are farms or open space, mines or informal settlements. Affordable Suburbs by Affordable Ratio Thabazimbi, Relationship between average income and local sales price, 2013

Thabazimbi NU Doorhoek SH

Regorogile Ext 4 Regorogile Ext 8 Thabazimbi A SP Ipelegeng

Union Section Mine

Rooiberg Tin Mine Setaria

Northam Ext 2 Leeupoort SP

Majuteng Northam Ext 5

Source: Stats SA Census, 2011, South African Deeds Registry via Lightstone (Pty) Ltd, 2015.

Total Residential properties Affordability Ratio 0 0,55 3,00 500 1 000 1 500 2 055

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 14. Rental Index

14.1 Key Findings

In Thabazimbi, 46% of households rent, according to the 2011 StatsSA census, which is mid-range amongst the mining towns in the study.

The opportunity for rental housing development within Thabazimbi is strong within specific areas, e.g. Northam Ext 5 – which scored highest on the rental index. This suggests that the opportunity for rental housing is strongest in this specific area. Those areas with greater density, modest incomes and affordability challenges are more likely to support quality, professionally managed affordable rental housing. Rental housing also provides flexibility to employers and workers as mining markets expand and contract from time to time.

14.2 Policy Implications

Due to the cyclical, commodity and demand-driven nature of these towns’ primary industry, rental housing becomes a very important housing solution.

Rapidly changing housing demand, driven by mining activities, makes a strong case for prioritising quality rental housing. If rental housing is well-situated and convenient to transport and centrally located in dense areas, it can bring social and economic cohesion and vibrancy to housing markets over the longer term. The densifying of housing markets requires infrastructure upgrades and financial mechanisms which provide for long-term affordability and sustainability.

14.3 Quick Definitions:

Rental Index: A tool used to measure the potential suitability of local areas for rental housing, as measured by a group of five indicators which support rental housing including density, area median income, the affordability ratio and market growth as measured by the housing performance index. A higher score implies greater success for rental housing.

Affordability Ratio: the purchasing power of local incomes to afford local sales prices. The local average sales price is divided by the target house price. This shows the relationship between local incomes and local sales prices – a larger number means that local sales prices are harder for local incomes to afford, implying a mismatch between local housing options and residents.

Area Median Income: the percentage of the average local income to the municipal average income, which allows for understanding, the income relative to the market overall and across many municipalities.

Housing Performance Index: the growth of the local suburb in six key housing market indicators as compared to the municipality growth. A higher number implies more growth.

Percent Households Renting: the number of surveyed households that rent divided by the total number of households, per StatsSA census 2011. This includes everything from bedrooms and backyard shacks to single family homes and sectional title units.

Population Density: the number of people per square hectare of the suburb, as provided by StatsSA.

Tenure: the terms under which land or buildings are held or occupied, e.g. rental, ownership, etc.

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 14.4 Rental Housing: Driving Rental Index Thabazimbi, by suburb, 2013 an Affordable Housing Option Those suburbs with a higher likelihood of rental demand Rental housing is one of the most efficient and effective ways to provide affordable Doorhoek SH accommodation. In most South African towns, this means backyard shacks, an important but very inefficient means of meeting housing needs. While a social housing sector exists which targets lower income families in multi-unit buildings, these are primarily in large metropolitan areas. Many private developers and investors are

Rooiberg Tin Mine considering expanding significantly into Setaria the rental segment. If the demand-better understood, Government can meet housing backlogs quickly and affordably by promoting policies which target affordable rental housing. In Thabazimbi, it appears that Northam Ext 2 Leeupoort SP one subplace scores high on the rental index, i.e. Northam Ext 5. This suggests Northam Ext 5 that the opportunity for rental housing is strongest in this specific area.

Source: South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds registry. Security of tenure through a lease agreement,

Number of Residential properties Type Rental Profile residents have assurance of quality property 0 Informal Settlement High management means that consistent utility 500 Mines Low access and can even build up their credit 1 000 1 500 history with positive rent and utility accounts. 2 055 Owners of rental housing must locate their properties competitively to ensure monthly occupancy, rental housing must provide affordable access to transport hubs, jobs Rental Index Method Implies Weight and community services. By bundling a set Indicator of housing market indicators, it is possible 80 - 120% area median to find those places where a rental strategy Median Income Affordability 35% might be well-suited. The map shows those income areas with above-average densities, moderate Population Density Exceeds metro average Density 35% incomes and above-average households Housing currently renting, all important factors when Growing Demand 15% Performance Index considering the placement and promotion of rental housing. Ratio exceeds metro Affordability Ratio Affordability 15% average Several conditions are crucial for the creation of successful and sustainable rental markets: density, high demand and affordability. By using existing housing performance indicators, it is possible to prioritise the presence of those indicators intentionally to pick up those areas primed for rental housing. In order to sustain rental housing at scale, projects must be able to achieve density to keep costs down and access ready markets with good proximity to jobs, transport and educational opportunities to keep projects running smoothly.

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 15. Key Concepts

The definitions of the concepts used in this profile are set out in alphabetical order below.

15.1 Affordable

Traditionally, affordable refers to housing or areas with prices or values below the overall market which target below- average incomes. It is often defined as R500 000 or less (but can be higher or lower depending on intent) because this is the amount that a household earning less than R16 000 on average can afford, the target limit of many Government subsidy schemes. Affordability is the relationship between the cost of housing (a mortgage bond payment or rent) and the income of the tenant or owner. Affordable housing is that which can be rented or purchased within certain constraints in this report, with a mortgage equal to 28% of the borrower’s income, at 11% over 20 years, with 5% of the sales price paid as down payment. Areas where the average income can afford the average sales price or more are considered affordable.

15.2 Affordability Ratio

This ratio measures relative affordability by comparing the AVERAGE sales price to the average income within the same area – higher ratios meaning less affordability. The average sales price is divided by the AFFORDABLE sales price, which is calculated as the present value of typical mortgage terms using 28% of the average income (95% of the average sale price, at 11% for 20 years). A ratio of 1 means that the average home price is exactly equal to the average household income. Ratios over 1 represent the number of times by which the average income must be increased to afford the average home.

15.3 Appreciation

The rate, or percent change over time between two values (most often price or value) is calculated by dividing the difference between the beginning and end values of the property in the timeframe by the beginning value. The result is the percent by which the property value or price changed. It is a valuable means of comparing the rate of change across very different property markets, areas or market sizes.

15.4 Average

The result obtained by adding several amounts together and then dividing this total by the number of amounts. For instance, average sales price is calculated by adding up all sales within an area and dividing this total by the total number of sales within an area. The average is useful for comparing and understanding different areas, market sizes, and property types.

15.5 Benchmark

An indicator that is calculated in the same way across a larger level (such as national or municipal levels) to compare with smaller areas (such as main places or suburbs). Benchmarks are useful for understanding the performance of housing markets because they provide a consistent means of comparing markets to each other and to larger areas. For example, local markets perceived as having modest appreciation rates may actually be growing quickly when compared with other areas, the metro or the country as a whole. Benchmarks are a key component of the Housing Performance Index, which uses them to determine whether local areas or metros are changing faster than; about the same as; or slower than the metros or the country.

15.6 Bonded Sale

A sales transaction transferring ownership of a property, which includes an associated mortgage bond used by the buyer to purchase that property and which the lender requires to be secured by that property. Bonded sales reflect lender investment in an area and perceptions of market strength and risk levels.

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 15.7 Churn

This refers to the total number of homes sold within an area over a one-year period divided by the number of homes within that area. Similar to turnover, churn represents active market interest, a large pool of eligible buyers and willing sellers, and ready access to mortgage financing. In affordable areas, lower churn can reflect reduced housing mobility rather than less marketability, as the result of fewer upward housing options for potential sellers, and less access to bond financing for potential buyers. Other indicators (such as bond rates or types; loan to values; equity rates and income) can help differentiate marketability from pent-up market mobility.

15.8 Equity

The value of ownership interest in a property, primarily the current VALUE of a property minus the current value of any bonds or other claims on the property. Equity value grows as mortgage balances are paid down and property values increase. Equity is realised when a house is sold and is most often used to purchase another property, by either increasing the amount available to purchase or lowering monthly mortgage payments (or both). Individual circumstances within neighbourhoods may vary widely, but areas with higher aggregate levels of equity represent greater opportunity for upward mobility, both for existing residents who can sell and invest the equity in a new home and for lower income households able to purchase the existing home.

15.9 Equity Growth

The rate at which an owner or investor’s equity value has changed over time, calculated by dividing the difference between the values of equity at the beginning and end of the period by the beginning year’s equity value. Growth in equity (along with income levels) can be used to determine market potential, as equity significantly boosts the purchasing power of potential buyers. Circumstances that increase equity return include prices that appreciate faster than debt is paid down, less debt, and registrations of new properties with no debt.

15.10 Formal Housing Market

A formal housing market is an area where owners sell or otherwise transfer residential properties (which have been registered on the national title and deed registry) to willing buyers who become the legal owners of those properties. Housing markets also include residences that are rented, traded, bartered or otherwise swapped, or legally occupied. This report tracks formal housing markets, as it only uses actual sales reflected on the South African deeds registry. It is estimated that 25–50% of all properties in South Africa are not registered.

15.11 Government-sponsored housing

Housing which was created through some government intervention, from site and infrastructure provision, direct construction or finance, such as Site & Service, RDP and BNG. While these homes are not recorded as such on the deeds registry, their presence is estimated based on surrounding registrations, timing, prices, and volume of activity.

15.12 Housing Continuum

The housing continuum includes all ranges and options of housing, from temporary shelter and informal housing to the highest variety of housing ownership and occupancy models and prices. A continuum implies a continuous, connected marketplace of housing options, which serve the full range of conceivable housing demands as people’s lifestyles and life circumstances change over time. In reality, most housing markets are an uneven distribution of housing supply and housing demand.

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 15.13 Leverage

Leverage is the practice of purchasing something by borrowing part of the total cost and is measured by the degree to which a buyer has borrowed funds to purchase a home. Also called gearing, leverage can be measured in several ways (such as loan to value or equity ratio), but all compare bond amounts to the housing value. Generally, homes or neighbourhoods that are highly leveraged are understood to be higher risk because owners lose less equity if they default. Areas with lower leverage rates are generally considered more attractive because lenders have less risk, while owners have more invested and have more potential EQUITY to invest in new housing options.

15.14 Market Segment

This refers to the aggregate of all properties within a certain rand value. Properties are aggregated by their VALUE to better understand the unique dynamics of these market segments. Values are divided into three bands: values under R250 000; between R250 000 and R500 000; and above R500 000. Generally, properties at or below R500 000 are considered affordable because the estimated monthly housing cost (R15 000 to R16 000) is considered the maximum income eligible for many Government subsidy programmes, above which potential buyers must access the unsubsidised housing market.

15.15 Market Share

Market share is the percentage of a market accounted for by a specific entity in that market. Lending market share is determined by the number of all loans in an area or bond portfolio, originated, or held by a single institution, divided by the total number of bonds in the area or portfolio. Market share can reflect the business model or the prevailing attitudes of particular lenders towards opportunity within certain areas. Lenders track their market share by area and value carefully: too high could mean that they are at greater risk if values decrease, while too low means that the lender may be losing business to competitors.

15.16 Rental Index

A score calculated for each suburb, to measure the potential suitability of local areas for rental housing, as measured by a basket of six indicators, which are more favourable towards rental housing. A higher score, between 1 and 10, implies a greater likelihood of success. These indicators include density; the number of households currently renting; area median income; the affordability ratio; households to properties ratio and market growth as measured by the Housing Performance Index. The index gives higher weight to aspects more suitable to rental housing, such as density and income, and moderate weight to the current number of households renting (as reported to the census), the local income as a percentage of the municipal median income, affordability (the relationship between local incomes and sales prices), and the number of households in the area to formal housing units on the deeds registry.

15.17 Suburb

A neighbourhood (within or beyond the central metropolitan area), with an identifiable name, often socially accepted borders and common characteristics. This report uses suburb boundaries as established and demarcated by StatsSA (and referred to in its documentation as sub-places). In 2011, there were about 22,000 sub-places within South Africa.

15.18 Value or Worth

The value of a property as determined by several factors, including recent comparable sales nearby; CHURN; lending activity in the area; specific and area property details, such as the size, age, and amenities. A property’s worth is often related to the amount of information available to make an appropriate determination, which is a contributing factor in undervaluing affordable areas where details on formal market activity is inconsistent. This study uses Lightstone’s (www.lightstone.co.za) proprietary valuation methodology to determine value.

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report 16. Source List

•฀ Africa Mining IQ. [sa]. Coal Mining in South Africa. [O]. Available. http://www.projectsiq.co.za/coal-min- ing-in-south-africa.htm. Accessed 09 February 2015 •฀ Anglo American. 2011. The A Magazine: Partnership for Success. [O]. Available. http://southafrica.angloamerican.com/media/~/media/1AE5E719F7AB44B790756A552900D6B6.pdf Accessed 09 February 2015. •฀ Thabazimbi Local Municipality. Thabazimbi Local Local Municipality 2013/2014 Draft IDP. Thabazimbi. •฀ Thabazimbi Local Municipality. [sa]. Thabazimbi Municipality. [O]. Available. http://www.thabazimbi.gov.za/ Accessed 09 March 2015.

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The Housing Development Agency | Thabazimbi Mining Town Housing Market Report

Department of Human Settlement The Housing Development Agency (HDA) 240 Justice Mahomed Street 6 - 10 Riviera Road Govan Mbeki House Riviera Office Park, Block A Sunnyside, Pretoria Killarney 0002 Johannesburg, 2193

Private Bag X645 (Minister) PO Box 3209 Pretoria Houghton, South Africa, 2041 South Africa, 0001 Phone: +27 11 544 1000 Phone: +27 12 421 1311 Fax: +27 11 544 1006/7 Website: www.dhs.gov.za Website: www.thehda.co.za